Trade Promotion Authority (TPA) Questions and Answers
MYTH 1: Trade Promotion Authority (TPA) is the same thing as the Trans-Pacific Partnership (TPP).
FACT:
The Trans Pacific Partnership (TPP) is not the same as Trade Promotion Authority (TPA).
The TPA and TPP are different bills and will be different votes.
o
TPA:
TPA is the way that Congress chooses to exercise its constitutional authority to
“regulate Commerce with foreign Nations” by allowing the President a process for
ensuring that international trade agreements are considered by Congress.
The current TPA proposal would give Congress authority over TPP and other future trade proposals.
o
TPP:
A proposed trade agreement being negotiated among the United States and
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It seeks to remove tariff and nontariff barriers to trade that currently exist.
Without TPA, FTAs, including TPP, will not be possible.
o
Since TPA was first enacted in 1975, it has been used for 14 free trade agreements.
o
Knowing that treaty terms could be changed by any of the 535 members of Congress or that the treaty could be stalled in committee or debate will make our trading partners much less likely to compromise on the sensitive, important issues. They need assurance that a deal negotiated with the United States will be considered by Congress, and TPA gives them that assurance.
If the U.S. does not engage in FTAs, other nations, including China, will, and they will gain increasing control of the global economy.
o
“From 2000
-2010, East Asia countries negotiated 48 agreements, but U.S. had only 2 in that
region.”
1
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“Our share of East Asia’s imports fell by 42 percent, while every one of our top competitors did
better.”
2
o
"China is negotiating trade agreements with countries all over the world, including South
Korea, Australia, and Norway in order to push its own agenda.”
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MYTH 2: The trade bill is secret. FACT:
Concern about the transparency of trade agreements, including the TPP, is one of the best reasons for passing TPA. TPA
strengthens
Congress’s oversight of the Administration.
H.R. 1890, the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, includes several provisions that require the Administration to regularly consult with Congress and to comply with strict transparency standards.
o
Read negotiating texts.
Throughout the talks, members and staff will have full access to treaty text. Currently, the Administration is not required to provide the text. With TPA, treaty text will be available online for the first time.
o
Up-to-date briefings.
TPA will require the United States Trade Representative (USTR) to update any member who requests it on the current status of negotiations.
o
Provide public summaries.
TPA will require USTR to publish and update summaries on each chapter of the treaty so that the public can be informed.
1
Ways and Means Committee Handout. May 2015.
2
Ways and Means Committee Handout. May 2015.
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Ways and Means Committee Handout. May 2015.
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Publishing deadline.
The Administration must publish the completed trade agreement at least 60 days before the Administration agrees to it (and, therefore, before Congress votes on it).
o
Attend negotiating rounds.
Under TPA, any interested member will be authorized to attend negotiating rounds.
o
Transparency Officer.
TPA will establish a USTR employee who will consult with Congress and the public on transparency policies.
MYTH 3: TPA gives President
Obama “
carte blanche
”
to enter into trade treaties. FACT:
Congress will get the final say. No trade agreement will become law without Congress’s vote.
If the President does not meet all requirements or comply with the transparency and consultation requirements, Congress can cancel the vote.
Other means by which Congress can limit the use of TPA:
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Procedural Disapproval Resolution:
If Congress determines that (1) the President has not complied with the transparency and consultation requirements or (2) has not made adequate progress in the negotiating objectives, Congress may remove expedited legislative consideration for the trade bill.
Both Houses of Congress must adopt a "procedural disapproval resolution" (PDR) within 60 days of each other. (The PDR is a simple resolution that must be passed only in its chamber of origin. No conference committee is needed between the two chambers.)
May be initiated by the finance committees of House or Senate at any time.
If the committee doesn’t want to pursu
e this resolution, leadership can make a trade bill ineligible through the Rules Committee.
o
Of course, Congress retains the power to pass new laws that revoke the President’s fast
track authority or that change the rules for considering trade bills. MYTH 4: TPA will change U.S. immigration law.
FACT:
Neither TPA nor any pending trade agreement gives the Administration power to unilaterally change US immigration laws.
For any administration:
o
One of the negotiation objectives in TPA specifically clarifies that the trade agreements may not change U.S. immigration law. If the President fails to meet his negotiating objective, Congress can vote down the agreement.
o
No trade treaty adopted through TPA will be self-executing; Congress would have to pass legislation to implement it
o
As discussed in Claim 1, TPA actually
strengthens
Congress’s oversight over the trade treaties
in immigration and all other matters.
It strengthens safeguards to ensure that the President is consulting Congress.
By strengthening transparency, it helps to ensure that the President is not misleading Congress.
Congress has the final say: it can vote any trade law up or down.
In the specific case of TPP:
o
Michael Froman stated, “…the United States is not negotiating and will not agree to anything
in TPP that would require any modification to U.S. immigration law or policy or any changes to
the U.S. visa system.”
o
“…other TPP Parties are negotiating temporary
entry commitments with one another, but the U.S. is not. We will not be making offers or agreeing to anything in that area. No provision in TPP will require changes to U.S. immigration law, regulations, policy, or practice because our system is already operating in a manner that is
consistent with the provisions in the temporary entry chapter.”
o
House Judiciary Committee Chairman Bob Goodlatte (R-VA) affirmed this understanding in a letter to other members of Congress:
“Whatever other countries participating in the TPP
negotiations agree to regarding temporary entry, the U.S. will not be
a signatory…
There is nothing in the current draft of the TPP that will in any way advance or facilitate this or any other unc
onstitutional action by the Administration.”
MYTH 5: Congress is ceding its Responsibility to President Obama FACT:
The Constitution has already given the President the power to negotiate treaties with other nations. TPA does not give him new authority.
The Constitution has given Congress the ability to “regulate Commerce with foreign Nations…” While the President has the power to negotiate treaties, Congress must often implement
them through legislation. TPA actually increases Congressional control ove
r the President’s ability to negotiate.
Without Trade Protection Authority (TPA), the President can take the lead on trade negotiations: he sets his own agenda and he decides when (or if) he will consult Congress. Through TPA, Congress upholds its own constitutional authority to regulate foreign commerce. Through TPA, Congress places three main limitations on the actions of the Administration: 1.
The Administration must pursue 150 specific negotiating objectives 2.
The Administration must regularly consult with Congress and comply with strict transparency standards. 3.
Congress gets the final say. No trade agreement will become law without Congress’ vote.
MYTH 6: American workers will be hurt by the international labor market. FACT:
By facilitating trade agreements, TPA will help American (and Ohio) workers.
Trade agreements create more American jobs and better paying American jobs.
o
More jobs:
38 million American jobs are tied to trade
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(1 in 5 American jobs)
There are more than 1,500,000 trade jobs in Ohio.
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(More than 1 in 5 Ohioans)
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Better paying jobs:
1,500,000 trade jobs. (That’s more than 1 in 5 Ohioans)
Trade agreements stimulate economic growth:
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Nationally:
“95% of the world’s consumers
live outside the United States.
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”
Trade agreements being negotiated in Asia and Europe would provide greater access to 1 billion new customers.
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“The U.S. has a $50 billion manufacturing trade surplus with FTA nations; $500 billion deficit with other nations”
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4
http://businessroundtable.org/sites/default/files/Trade_and_American_Jobs.pdf
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http://businessroundtable.org/resources/trade-and-american-jobs-2014-update
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https://www.uschamber.com/sites/default/files/documents/files/Trade_May2012%25281%2529.pdf
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Ways and Means Committee Handout. May 2015.
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Ways and Means Committee Handout. May 2015.